Bernard Durkan (Kildare North, Fine Gael)
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Question 147: To ask the Minister for Agriculture, Food and the Marine the extent to which his Department continues to review the future prospects for pigmeat and lamb industries with particular reference to market share and costs; and if he will make a statement on the matter. [28892/12]

Simon Coveney (Cork South Central, Fine Gael)
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The market performance of the sheep and pork sectors, in common with other agricultural sectors, is a function of supply and demand. The long-term future of the sectors will depend on their ability to satisfy the market and in order to do this well, they must focus on competitiveness, innovation and the demands of the consumer.

Sheep sector

Food Harvest 2020 sets a target of 20% increase in output value for the sheep sector by 2010 and envisages that over the coming years, demand for sheepmeat on the European market will outstrip production levels which should provide opportunities for exporting countries such as Ireland. This should provide the potential for better returns, provided the industry can continue the market and product diversification which has been evident in recent years.

The recommendations of the report focus on farm competitiveness and the processing sector. On the farm side, they emphasise the importance of the continuance of the application of on-farm labour efficiencies and new technologies, breed improvement and the production of a quality product. On the processing side, the focus is on efficiencies, innovation and improved product range.

There has been significant public investment in the sheep sector in recent years. Key supports for this sector include €7 million from the 2009 Single Farm Payment National Reserve under the Uplands Sheep Payment Scheme and €54 million for the three-year Grassland Sheep Scheme which commenced in 2010. The grassland Sheep Scheme is proving to be a valuable support mechanism in terms of improving income and confidence in the sector. The sheep fencing/mobile handling equipment scheme, which is one of five Targeted Agricultural Modernisation Schemes (TAMS) was re-opened to applications last December and the first tranche closed in February of this year. In addition Teagasc has allocated almost €1.5 million for sheep research for 2012. Bord Bia will also spend over €1.1 million this year on a promotional strategy for the Irish sheep sector. All of the supports have provided a significant incentive to farmers to maintain their production levels, which is vital for the future of a viable sheep industry in Ireland.

In light of the fall in producer prices during the month of May and following consultation with the industry, Bord Bia brought forward its summer lamb promotion campaign to commence on the 5th June. Furthermore Bord Bia has strengthened the TV advertising element of the campaign, by extending its duration from 3 to 4 weeks.

I very much welcome the fact that the declining trend in numbers in our national flock is showing signs of reversal and our sheep numbers are now increasing. This reflects a growing sense of confidence amongst sheep farmers in terms of rebuilding breeding stock numbers which will ultimately lead to an increase in through-put. Whilst it is still too early to provide an accurate estimate for the 2012 lamb crop, it is estimated that it will be up in the order of 1-2%.

Pig Sector

The pig sector remains the third largest individual component of the agrifood sector with production, prices and exports all growing significantly during 2011. Ireland is more than 150% self-sufficient in pigmeat with the result that export values reached almost €400 million last year, an increase in value of 18% compared to 2010. Export volumes of Irish pigmeat totalled 168,000 tonnes in 2011, some 14% higher than the previous year. Finished pig supplies at export meat plants stood at almost 2.85 million head for the year, almost 10% higher than 2010, reflecting an 8% rise in the breeding herd combined with improved on-farm productivity. The industry supports over 7,000 jobs in farming, milling, processing and ancillary services.

From a National perspective, the Food Harvest 2020 Report targets a 50% increase in the value of output by 2020 and factors such as improvements in sow productivity and growing the size of the national herd will help to meet this target. Through the TAMS scheme, my Department is providing critical investment support for operators to assist them in meeting new sow welfare standards from 1st January 2013. In addition, Teagasc, through its Moorepark pig research facility and the provision of FETAC courses in pig production and benchmarking pig herd performance, plays a critically important role in improving productive capacity at farm level.

Pigmeat remains the most consumed meat worldwide and I consider that the substantial trade surplus in pigmeat in Ireland and the measures being taken to improve efficiency and market access leave us well placed to avail of developing opportunities in international markets.

In so far as international trade in Irish pigmeat is concerned, my Department has been extremely active in developing relationships in new and expanding markets in order to build the kind of confidence in Irish production and control systems that provide a platform for long term trading relationships in the future.

And of course Bord Bia continues, through its promotional activities, and through the pigmeat quality assurance scheme, to consolidate the position of Irish pigmeat on the domestic market and to expand its presence on EU and third country markets.

Prices during 2012 have been above the corresponding levels in both of the previous years. At the end of last month, prices were almost 9/c per kilo ahead year on year, which equates to an increase of more than 6%.